The acquisition positions AdvancedMD as a SaaS leader for the small to medium size physician office and advances its vision of delivering an integrated physician office automation solution from a single vendor, said CEO Eric Morgan. "This acquisition puts us up against the best players in the market," he said.

AdvancedMD had an EMR-Lite documentation management solution within its practice management solution, but the application was "nowhere near ready to be certified," he said.

With the federal stimulus funds geared towards health IT adoption, AdvancedMD believes the industry has reached the tipping point toward EHR prevalence in the marketplace, Morgan said. The second half of 2009 saw more EHR traction, he said. Morgan expects "significant adoption" to occur in the next two to three years, with the second half of 2010 experiencing an uptick. "Our customers and prospects are asking for it," he said.

The acquisition brings technology and expertise to AdvancedMD. The company will combine and expand its product team. Morgan said AdvancedMD has the resources, scalability and critical mass to enable that uptick.

PracticeOne's EHR was certified by the Certification Commission for Health Information Technology in 2008 for ambulatory medicine, cardiovascular medicine and child health. Also included in the acquisition is PracticeOne's patient portal, which enables patients to communicate with their providers.

“The stimulus is great, but the ROI on an integrated solution will be so much more powerful,” Morgan said. With the industry heading toward integration of clinical and financial IT systems, he said. “AdvancedMD is in a position of strength."